Legal backing for Rio's decision: Justice O'Bryan's verdict
Justice O'Bryan, in a meticulous judgment, endorsed Rio Tinto's actions. He cited the common law principle of supervening illegality, where contractual obligations are nullified due to a change in the law. The judge also emphasized Art 17 of the Tolling Contracts, providing a robust defence for Rio against claims of breach of contract.
"I have found that the production of alumina by QAL for ABC [Russian aluminium producer] and the delivery of the alumina to ABC [Russian aluminium producer] would have been contrary to the designated person sanction because, by operating the Gladstone plant pursuant to the contractual arrangements governing the Gladstone alumina joint venture, QAL indirectly makes the Gladstone plant available for the benefit of Messrs Deripaska and Vekselberg," Justice O'Bryan illustrated in great detail.
